In this week’s Market Movers Asia with Dipthi Bhat:
- Asian refiners shift to US crude amid Iran’s attack on Israel
- China's lithium carbonate price to remain supported
- Tokyo Steel to evaluate domestic steel market
- India’s, China's ample stocks to limit thermal coal spot trades
- Chinese alumina market to stay rangebound amid tight ore supply
- Palm oil markets anticipate lower stocks
This week, the spotlight is on Asian refiners as they reassess their 2024 crude procurement strategies amid escalating Middle East tensions, particularly following Iran's recent attack on Israel.
Many in the Far East are considering increasing their crude imports from the Americas and Africa.
The Chinese market for lithium salts is expected to remain strong in the short term despite a drop in prices.
An increase in demand from downstream users in April could keep domestic prices up, but buyers are hesitant to buy at higher prices.
In steel, Japan’s Tokyo Steel will release its assessment of the domestic steel market amid high energy costs and weak local demand from construction and manufacturing, though, a weaker yen could boost exports and help offset these challenges.
The Asian thermal coal market is expected to see limited spot trading due to high domestic stock levels. Meanwhile, Indonesian producers are resuming operations after Ramadan.
They expect higher prices as demand from China and India increases, as temperatures rise.
The Chinese alumina market is expected to be stable as domestic supply is tight and there is little chance that smelting capacity in Yunnan will increase before the high-water season.
Refineries in central China plan to resume production but the pace remains slow due to domestic ore supply tightness.
In agriculture, sources expect Malaysia to report a drop in palm oil stocks and a rise in exports for March, which could support prices.
However, a drop in soybean prices and reduced demand from India and China could negatively impact sentiment.
I’m Dipthi Bhat, thank you for kicking off your Monday with S&P Global Commodity Insights